Sony Corporation 's Pest Analysis

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Sony Corporation’s PEST Analysis

Introduction
Sony Corporation is one of the world’s largest manufacturers of electronic product. It engaged in business through electronics, motion pictures, music and financial services. Though it used to be a leading manufacturer, Sony Corp has now been entangled with low sales rate and financial strain in many of its product lines (Euromonitor, 2014). This paper demonstrates three events of Sony Corporation as a case study to analyze how these external factors affect companies’ decision making, then discuss how has international business environment changed from these three events and finally the conclusions are presented.

Sony acquired Columbia Pictures Entertainment, Inc. in 1989
Japanese corporations showed a growing interest in entertainment business in the 1980s. Sony has been questing to win a place in the entertainment software business for some time. It merged CBS Records in 1987 for $2 billion (Fabricant, 1989). And in September 1989, Sony Corporation acquired Columbia Pictures Entertainment, Inc. for the amount of $3.4 billion. The Sony Group intended to secure software in high quality so that Sony 's wealth of hardware products could be promoted. By acquiring CBS Records and Columbia Pictures, this ultimate strategy has been fulfilled (Sony history, 2015).

Political Factors
Ronald Reagan became the president of the United States in 1981. He used the theory of supply side economics as the base of his economic policies, which

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